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Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate.
Answer: the conditions when forward exchange rate will be an unbiased predictor of the future spot rate is
a) If the risk premium is insignificant and
b) If foreign exchange markets are informationally efficient.
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A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment from revenues generated by a specifie
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Budgeting: All business owners should recognise and understand the importance of preparing and maintaining a financial budget for their business. Budgets are an essential fi
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